The markets jumped higher today at the open, rallying on a sharp drop in the Dollar once again. Commodities were off to the races, with gold and silver leading the charge. The SPDR Gold Trust (ETF) (NYSE:GLD) hit a high at the open of $139.54 while the iShares Silver Trust (ETF) (NYSE:SLV) hit a high of $30.00. This move was driven by the hype over the last week and yesterday. Amateur traders and investors were buying with reckless abandon, after hearing rumors that JPMorgan Chase & Co. (NYSE:JPM) was caught short and an inevitable short squeeze on silver was looming. Even the media and talking heads on TV were all over the squeeze.
When I hear this nonsense I start to salivate on the short side. Always go the opposite way of the crowd. That was all hype on JPM being caught short. The average investor who bought this morning was plainly fooled and took the bag from institutional smart money. Please, do not be so dumb average investor! It drives me crazy. Learn the game. As an expert trader and Chief Market Strategist, I implore you all, do not get caught in the hype.
Like clock work, these commodities jumped higher at the open in a frenzy of buying by amateurs, while institutions gladly sold to them. This marked the high of the day. Since the GLD hit its high of $139.54, it reversed and turned negative, dropping to a low of $137.32. The SLV collapsed from a major gap higher to turn negative. It went from $30.00 to a low of $29.12.
Never fall into these foolish tricks. Trust me, if JPM was truly short, they are powerful enough with powerful friends to push it in the direction they wanted. I would dare say, now most institutions are short silver and a small pull back has begun. Learn the tricks, do not get caught with your pants down.
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
#1 Rated
Article Source: http://www.articlesbase.com/day-trading-articles/do-not-get-caught-with-your-pants-down-3803838.html
About the Author
Gareth Soloway has been an avid trader since his days at Binghamton University where he studied Economics. After receiving a BA in Economics he began work as a financial adviser. While working as a financial adviser, Gareth continued to study the markets and trade for himself. Following his work in the financial sector, Gareth went on to trade alongside professional traders learning the ins and outs of technical and fundamental analysis. After years of trading, Gareth decided to partner with his friends and colleagues, Nicholas Santiago and Lou Cardinali to form InTheMoneyStocks.Com.